Reporter | Wang Yi
Rolle Deng, who currently plays for the Minnesota Timberwolves, has been playing in the NBA for 15 years. Although he is not one of the superstars, he has averaged 15 points in more than 900 games he has played, and has been selected for the All-Star Team.
The accumulated professional experience and stable performance have brought Rohr Deng a considerable income. His total revenue in the NBA is currently about $152 million.
More than a hundred million dollars is enough for anyone to start fantasizing about a comfortable life of wealth freedom. However, Deng did not let the money wait in the bank for him to retire. Deng was born in Sudan and lived in Egypt and England. He came to the United States at the age of 14 and began to focus on playing. After a year at Duke University, Deng was selected by the Phoenix Suns with the seventh pick in the 2004 draft and subsequently traded to the Chicago Bulls.
After entering the league to play, Deng quickly developed his main business of off-the-field financial management - investing in real estate. Currently, his investment projects include hotels, holiday centers, residential housing and apartment buildings, with a total value of about $125 million.
In the early days, he invested more in East Africa and London, and then began to dabble in U.S. real estate projects. His money went everywhere — buying homes in Hampton, Baltimore, investing in hotels in Las Vegas, and even supporting high-end vacation centers in the Bahamas. To this end, Deng also set up his own company, d3n9.
Starting off-field investment as early as possible when their fame and strength are online is the awareness that many professional players gradually begin to cultivate. Some people like Curry, James, and Griffin are keen on film and television production; Iguodala and Durant prefer the venture capital field; Anthony and Rose are Deng's peers, both of whom favor large real estate projects.
"If you understand the market and are able to make good use of your resources and choose the right project, your opportunities are limitless." Deng said in an interview with Forbes.
Real estate investment may not sound as trendy as tech investments and Silicon Valley startups sound, but they may have higher potential returns than the latter.
In 2017, U.S. tax reform created the "opportunity zones" program, which hopes to stimulate new investment capital into some low-income and impoverished communities across the country, boosting local economic development and increasing employment. Currently, there are nearly 9,000 designated "opportunity zones" across the United States. Poverty rates in these regions are above 20 per cent, or the average household income in the region is less than 80 per cent in the surrounding area.
"Opportunity zones" allow investors to inject their own money into projects or companies in low-income areas of each state. There is no upper limit on the amount of these investments, and there is no limit to the amount of tax avoidance, which directly increases the profit opportunities of investors.
Naturally, Luol Deng did not miss this "opportunity". Currently, Deng and several NBA players are involved in a fund called "our opportunity."
The fund was founded in 2019 by former Wall Street banker David Gross and late rapper Nipsey Hussle. They hope to use this project to show the prospects of the "opportunity zone".
Deng and Gross met in 2014. Currently, Gross serves on the board of directors and chief investment officer of Deng's d3n9 company.
The "our opportunity" fund attracted two players, Dunn and Rose, early on. After Rose suffered a serious left knee anterior cruciate ligament injury in 2012, Rose and Rolle Deng, two Bulls teammates, were traded and each drifted to zero. It wasn't until 2018 that Rose and Deng finally played side by side with the Timberwolves again. At this time, their common interest has one more - real estate investment.
The two decided to invest in three projects in Chicago, including 23 buildings and 354 multi-family units, for a total investment of $25.6 million. Two of the three projects are located in the "opportunity zone".
Gross's project at crenshaw, and Deng's investment in Chicago, are just getting started. Gross plans to develop similar projects in at least ten U.S. cities, including Cleveland, Miami, New Orleans and Philadelphia, and to find regional spokespeople for each city like Rolle Dunn.
Currently, Ross, Anthony and Josh Smith have all joined "Our Chance." Anthony served as the fund's spokesperson in his hometown of Baltimore.
"Everyone has a deep connection to the community and strives to change the status quo of their birthplace with their personal brand and resources." Gross said.
Although the bankruptcy rate of NBA players after retiring is not as sensational as it was a decade ago, many players are still laymen for financial investment. Learning from your predecessor's experience is an essential process for investment success. Deng said his mentors include real estate entrepreneur Don Peebbs and JPMorgan Chase CEO Jamie Dimon.
In 2015, Deng himself launched a two-day commercial real estate investment exchange event, which has been held for several years. "We're always talking about players going bankrupt, but we don't talk about why things keep happening," Deng said, "seminars like this can educate players about real estate and strengthen their understanding of these kinds of investments." ”
"I don't think there may have been any professional athlete like Deng who has invested so much and deeply in the real estate field," Gross said, "and when everyone is still thinking about retiring, Deng has already started his second career." ”